Ask the Expert event - Wills and Trusts (2 - 6 Sept... - Mencap

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Ask the Expert event - Wills and Trusts (2 - 6 September)

8 months ago•26 Replies

This Ask the Expert event has now finished.

Thank you so much to everyone who came forward with questions during the Wills and Trusts Health Unlocked Experts week. We hope we were able to help you and ease your mind of any worries you may have had when planning the financial future for your loved one with a learning disability.

If you have any further questions; would like to attend one of our free Wills and Trusts webinars or would like our free Wills and Trusts guides – please contact us at:

Email: willsandtrusts@mencap.org.uk

Website: mencap.org.uk/willsandtrusts

Phone: 0207 696 6925

If you’d like more information on the Mencap Trust Company please contact them at:

Email: mtc@mencap.org.uk

Website: mencaptrust.org.uk

Phone: 0207 696 6932

================================

Hi everyone,

Members of Mencap's Wills & Trusts team and the Mencap Trust Company will be joining us here on HealthUnlocked for an Ask the Expert event, and will be on hand for the week answering questions and signposting to support around inheritance, will writing, and discretionary and disabled persons’ trusts.

Did you know an inheritance of just £6,000 can start to impact means tested benefits and support packages? We know it can be daunting to think and plan for the future, so the team will be here for you to take the next vital steps.

Please note, the team will be unable to give legal, tax or benefits advice but will be happy to signpost people to further sources of advice.

Thanks!

Written by

Maurice_Mencap

Partner

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26 Replies

•

MontyCat8 months ago

With very few banks offering trust accounts now, and not knowing which financial advisors are trustworthy, how would the experts advise going about setting up a trust for a disabled young adults? Who should we approach? Where and how is the money best invested? What type of trust should we set up - ie disabled persons trust? This would be with a view to putting money aside for future care provision, not to provide an income stream. Thank you

anonymous-28• in reply toMontyCat8 months ago

Great questions

Magnavoce• in reply toMontyCat8 months ago

We used Renaissance Legal for advice on Discretionary vs Disabled Person's Trust- informative and backed by the experience of many on this forum.

For the specific investment to fund the Trust have a meeting scheduled with Renaissance Finance (which is a separate entity to the Legal wing). It seems Investment Bond/s might be a way forward in case growth rather than income is planned for. Will update with pros and cons when we get there!

MontyCat• in reply toMagnavoce8 months ago

Thank you, that is helpful - I had not heard of this organisation.

Mencap-Wills-TrustsExpert• in reply toMontyCat8 months ago

Good morning MontyCat - thank you for your questions. You can contact the Wills and Trusts service - we can provide you with a list of specialist legal professionals in your area who are experts in trusts. They will be able to answer any questions you may have on the type of trust suitable and how to set up a trust.

I think you would find attending one of our Planning for the Future webinars very helpful too. These are online and completely free to attend. We invite a legal professional to speak about setting up trusts, the steps you need to take to protect the financial future of your loved one with a learning disability, and the types of trusts available. There is also a Q&A short session at the end of the presentation for any questions you may have.

To book your free place please visit: mencap.org.uk/willsandtrusts. For a list of specialist legal professionals and any further information please email: willsandtrusts@mencap.org.uk.

Thanks!

Nikk_a2• in reply toMencap-Wills-Trusts8 months ago

Hi, do you have a list of banks that are still offering current/savings accounts for trusts? As someone said earlier they are diminishing in number. We've already had to change bank once as they closed all trust accounts (natwest).

Mencap-Wills-TrustsExpert• in reply toNikk_a28 months ago

Hi Nick_b4 - thank you for your question.

Sadly we are fully aware the amount of banks offering trust accounts is diminishing and we will be doing our very best to raise awareness of this issue as we know how important trust accounts are to families when setting up financial provisions for your loved one.

The legal professionals we work closely alongside always suggest to ask your own bank first just in case they can help. Otherwise the banks and building societies we’re aware of that currently set up trust accounts are as follows:

Metrobank

Skipton Building Society

Carter Allen Private Bank

Please make sure you call them first to see if they offer this service or not - you will need to explain it is for a trust fund for a person with a learning disability.

Thanks!

Mencap-Wills-TrustsExpert• in reply toNikk_a28 months ago

Hi Nick_b4,

Re: your question about trust accounts - you could also contact Mencap Trust Company.

Mencap Trust Company manages trust funds for people with a learning disability, investing and protecting the money in a way that’s right for each family. They really get to know families and what a happy life looks like for their loved one – making the money available for the things they want and need. A not-for-profit, they offer low fees with no hidden costs. Mencap Trust Company has been working with families for nearly 50 years – find out how they can support yours at mencaptrust.org.uk.

Because Mencap Trust Company act as trustee for a number of trusts they have developed a long standing partnership with an investment management company that open accounts for individual trusts. This avoids the need to find a bank willing to open an account for each individual trust.

David from Mencap Trust Company will be available on Health Unlocked tomorrow so if you have any questions for him, please do add them to this chain.

Hope this is helpful. Many thanks!

MontyCat• in reply toMencap-Wills-Trusts8 months ago

Thank you for the links. In this case I am not the person setting up the trust - I just want to acquire as much knowledge as I can because I don't trust the people who have been appointed as trustees (through the will of my late ex-husband - his family who have no interest in or contact with my daughter) and want to ensure that proper provision is made for my disabled daughter. I think the resources you offer will help, thank you.

Mencap-Wills-TrustsExpert• in reply toMontyCat8 months ago

You're more than welcome. If you're able to, I strongly advise you come along to one of our free Planning for the Future webinars - the information is vast and insightful and there's time for questions at the end of the presentation too.

We also have free Wills and Trusts guides you can download for free on our website which you may find useful: mencap.org.uk/willsandtrusts.

We're always here to help.

Many thanks!

MontyCat• in reply toMencap-Wills-Trusts8 months ago

Thank you - I have booked a place on one of your webinars

MaxandCyd838 months ago

Hello, when my mum and dad made their wills, they made arrangements for a discretionary trust to be set up for my sister after their deaths. The solicitor who handled probate last year reassured me that the money couldn't be used for my sister's day to day living. I and a solicitor from the firm will be the trustees. My sister is in a brilliant care home and I have become her appointee.However, have there been any cases where a local authority has found out a discretionary trust exists and refused to carry on funding care home places? Sorry if this is a daft question but I really don't trust the council - and I work in local government so I know they are under pressure. Thanks

Mencap-Wills-TrustsExpert• in reply toMaxandCyd838 months ago

Good morning MaxandCyd83 and thank you for your question.

From reading your question it sounds like your parents have made great provisions for your sister by setting up a discretionary trust. I would speak to the solicitor who set up the trust to check that the trust has been set up correctly - just for peace of mind. As a rule, trusts are set up in a family name, not the name of your sister, so any inheritance placed in the trust will not be in your sisters name. This means that they are not her assets as such, meaning the local authority should not refuse to carry on funding care home fees.

I hope this helps reassure you but if you have any doubts we always suggest to review the Will to check the trust has been set up correctly. We can provide you with a list of specialist legal professionals if you would like to check the Will and trust document with a different solicitor. If you would like this list please email us at: willsandtrusts@mencap.org.uk stating which area you live in.

Thanks!

anonymous-288 months ago

My question is this - I have set up a discretionary trust and currently have named it as the beneficiary of the pension from my employer. I will be retiring soon and considering a SIPP with Vanguard but they do not allow trusts as beneficiaries. If I do not nominate a beneficiary and the pension goes to my estate can it still be treated outside my estate for IHT?

Mencap-Wills-TrustsExpert• in reply toanonymous-288 months ago

Hello,

Unfortunately we're not in a position to comment on IHT; however if you speak to the solicitor you set your trust up with, they should be able to advise you. Usually pension providers can re-direct payments to go into a trust. It could be because of how the trust has been set up. The first step I would take is to speak to whomever you set this trust up with.

Many thanks

class9F8 months ago

we made our wills at least 20 years ago leaving our autistic sons half in a discretionary trust. We haven’t looked at our wills since. Is a discretionary trust still the best option. Our assets are probably almost double what they were then as the mortgage is paid and house prices have risen so much. Our son is in supported living in a rented flat with rent paid direct by housing benefit to the housing company. he makes minimal contribution to the LA for the cost of care. His only income is PIP and ESA.

Mencap-Wills-TrustsExpert• in reply toclass9F8 months ago

Good morning class9F and thank you for your question.

It's good to hear you have already set up financial provisions for your son. We recommend you speak with a specialist legal professional and ask them to review your Will to ensure the discretionary trust is set up correctly as it was written some time ago. They will also be able to review if a discretionary trust is the right trust for your son. You can either speak to the solicitor who originally set up the trust to review or we can send you a list of specialist legal professionals who are qualified in this area of law. If you would like this list please email: willsandtrusts@mencap.org.uk and state which county you would like the list for.

Thanks!

AmberSun8 months ago

Do the experts have experience of equity release where the applicants have an adult dependent still at home? My brother has a severe learning disability and lives with my parents. My parents are wanting to release a large sum from their property but my brother doesn't have capacity to understand the implications for him should he survive them upon their death, nor would he be able to engage with a solicitor. My parent's broker initially said that no lender would lend to them in those circumstances (rightly so in my view), but then he came back and said he's found one or two who would consider lending as long as the LA has a care plan in place for my brother after my parents die (in my brother's case he would need full time residential care).

Is this right/ lawful? I'm a social worker myself (albeit in children and families) and have never really come across a care plan projecting into the future like that. My parents aren't even of retirement age yet so could live for another 25+ years.

Mencap-Wills-TrustsExpert• in reply toAmberSun8 months ago

Hi AmberSun - thank you for your question.

We highly recommend you speak with a specialist legal professional about your circumstance - they should be able to advise you on your concerns and offer guidance on the best steps for your parents to take to protect your brothers financial future.

We can provide you with a list of specialist legal professionals who are qualified in this area of law. Please email the team at: willsandtrusts@mencap.org.uk stating what area you live in and we can send you the list.

Many thanks!

Mencap-Wills-TrustsExpert8 months ago

Good morning everyone and thank you for the introduction Maurice!

As Maurice has mentioned, the Wills and Trusts team and also Mencap Trust Company will be here all this week answering any questions you may have on writing a Will and setting up a Trust.

My name is Emma - I'm the Senior Wills and Trusts Officer - and I will be joined by Leanne - our Wills and Trusts manager - and we will be here today to help guide you. As Maurice mentioned, we are unable to give legal advice or advice on benefits or tax, but we will help to signpost you as much as possible.

Look forward to speaking to you all!

Maurice_MencapPartner• in reply toMencap-Wills-Trusts8 months ago

Hi Mencap-Wills-Trusts , great to have you with us this week!

I've spotted a couple of questions that have been posted outside of the expert thread that you might also be able to help with:

- healthunlocked.com/mencap/p...

Thanks!

Bluey2038 months ago

A few years ago we did our wills through a solicitors, divided between our 2 sons, one of which will have a discretionary trust that is activated upon our death, for our son with severe intellectual disability who currently lives at home. My son is the only beneficiary, the trustees are my other son and 2 uncles, my other son has autism but no learning disability, but struggles with paperwork.

My concern is -

* Will my son being the only principal beneficiary effect his benefits.

* His brother is named as a family beneficiary and a trustee, and would only receive the funds on his brothers death.

*Would it be better to have a legal professional as a trustee alongside my son, who could give advise to him, rather than his uncles, as they would pass away before my sons like us.

*do we have the right trust or should we have set up the disabled persons trust

*Should we have a trust account set up now?

Any advice much appreciated😊

Mencap-Wills-TrustsExpert• in reply toBluey2038 months ago

Hi Bluey203 - thank you for your questions.

It sounds like you've made a great start in setting up provisions for your son to protect his financial future.

I'll go through your questions and answer them as best I can - for any legal questions I strongly advise you speak to the solicitor who set up your trust or you can contact us to receive a list of specialist legal professionals who are qualified in this area of law to review your documents (for a legal professional to review your documents would be at a cost - you will need to ask the legal professional for their fees).

Having a discretionary trust for your son, if set up correctly, will not affect his means-tested benefits. This is because a trust is not set up in his name and therefore the assets in the trust do not belong to him.

You mention your son is the 'only principal beneficiary' and then mention your other son is a family beneficiary and trustee of the trust so I assume you have 2 beneficiaries -both your sons? You would not be able to set up a discretionary trust with just one beneficiary - you need two.

Your choice of trustee is completely up to you. You would need to speak to a legal professional to see if they would be a trustee alongside your son. Trust companies, such as Mencap Trust Company, act as sole trustee meaning they take on the full responsibility of the trust. If you would like further information about Mencap Trust Company please visit: mencaptrust.org.uk.

You will need to speak to a legal professional to check you have the correct trust set up for your son. They will be able to advise the difference between the two and the 'criteria' needed to be met to be able to set up a Disabled Persons Trust.

You can set up a trust in your lifetime - meaning it is active now so you can add assets now or you can set up a trust in your Will - meaning it will become active when you pass. Again a legal professional would be able to discuss the different options available to you.

We have free Wills and Trusts guides you can download on our website: mencap.org.uk/willsandtrusts. You may find our 'Wills and Trusts' guide and 'Guide to being a Trustee' useful.

We also run free Planning for the Future webinars - we invite a legal professional to come along to discuss the different types of trusts available as well as steps needed to put in place to ensure the financial future of your child is protected. You can book your free place at: mencap.org.uk/willsandtrusts.

If you have any further questions please do not hesitate to contact us at: willsandtrusts@mencap.org.uk - we will be more than happy to help.

Many thanks!

Rianna28 months ago

Hello, we are completely clueless about all this. I have a young family, three children and my youngest is nonverbal and has severe learning disabilities and sensory challenges. I don't know anything about trusts and how they work or whether it shouldn't be a concern right now because of his young age. Please advise where to start? Thank you!

Mencap-Wills-TrustsExpert• in reply toRianna28 months ago

Hi Rianna2 - thank you for your question.

It can be daunting thinking about your child's financial future but our Wills and Trusts service can help guide you.

We run free online Planning for the Future webinars where we invite a legal professional to talk about the types of trusts available and the steps you need to take to set a trust up. We also have free Wills and Trusts guides and we a list of STEP qualified (Society of Trust and Estate Practitioners) legal professionals we can send you when you are ready to start putting provisions in place.

I would advise you to come along to one of our free webinars - this is a great starting point as the legal professional talks about the importance of writing a Will and setting up a trust, including what the implications could be if you do not have a trust set up. You can book your free place at: mencap.org.uk/willsandtrusts.

Once you have been to a webinar, you can download our free Wills and Trusts guides - you are welcome to download them before attending but we do tend to find that people find the webinars very useful and then are more understanding of the guides when they read them. You can download our free guides at: mencap.org.uk/willsandtrusts.

You are also more than welcome to contact us with any questions you may have. You can email us at willsandtrusts@mencap.org.uk or call 0207 696 6925. We're here to help you.

Many thanks

Rianna2• in reply toMencap-Wills-Trusts8 months ago

Thank you for all the signposting, as it certainly is daunting! I will follow your advice.